Welcome to “Hot Topics” a section we’ve created in an effort to share opportunities for tax education, upcoming events and other items of interest. Here you will find industry related topics such as tax law changes, information about collections requirements and procedures, relevant news stories, articles from our staff and more.   Be sure to check back often for new content and updates. Thank you for reading.

 

So you received a Reminder Notice for the last tax year and are wondering why, well hopefully this overview will help you to understand why and the steps that you can take to rectify the situation.

 

Why did I receive a Reminder Notice for a Local Earned Income Tax Final Return for the area I resided in last year?

Current legislation, ACT 32 of 2009, requires, under Section 502, that:

(1) Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the resident tax officer, a final return showing the amount of taxable income received during the period beginning January 1 of the current year and ending December 31 of the current year, the total amount of tax due on the taxable income, the amount of tax paid, the amount of tax that has been withheld under section 512 and the balance of tax due. All amounts reported shall be rounded to the nearest whole dollar. At the time of filing the final return, the taxpayer shall pay the resident tax officer the balance of the tax due or shall make demand for refund or credit in the case of overpayment.

Based upon this requirement; taxpayers who had received any taxable wages and/or net profits, or had been supplied a final return by the tax administrator for their taxing jurisdiction, are required to file a final return with the administrator, even if no taxes are due.

 

The form includes a $25.00 Fee on it, what is this for?

Our contractual agreements with each of the 32 County Tax Collection Districts that we serve grant us authority, under ACT 192, to apply our fees to individuals who have failed to file an individual return with us.  This fee is applied so that the taxing bodies and taxpayers who comply with the requirements of ACT 32 do not have to pay for those individuals who fail to comply or pay their taxes on time.

 

Now that I have received a Reminder Notice what must I do? 

You will need to file the form sent to you with us and include the supporting documentation showing any wages paid (W-2/1099) and/or Net Profits earned (Schedule PA1120/Schedule PA-C) for the tax year in question.

If any of the following scenarios apply to you please follow the directions provided for each:

If you are HOUSEWIFE, RETIRED, STUDENT (with no income), UNEMPLOYED and/or DISASBLED (with no income).   Please check the appropriate box on the form provided, sign it and return it to us. The $25.00 fee that is shown on the return will be waived for this tax year as a One Time Courtesy to you.  You can also provide this information to us by calling the number listed on the form.

If you are EMPLOYED by an employer who withholds the local earned income tax from you pay and the full amount of taxes due have been withheld, please complete the return per the instructions provided and attach copies of your W-2’s and return the form to us along with a check for the $25.00 fee shown on the form.

If you are EMPLOYED by an employer that does NOT withhold the tax from your pay and/or are SELF-EMPLOYED, please complete the return by entering your earnings (wages and/or net profits) on the appropriate lines. If you have made estimated payments throughout the year, enter those on Line 11 and complete the return indicating the taxes or refund due. You will then need to add the $25.00 fee shown and remit payment of the taxes, as well as any penalties and interest indicated by your calculation.  Once you have completed doing so, please return the form, supporting documents and payment to us to the appropriate address shown.

 

You can find additional information on this matter at: https://www.hab-inc.com/faqs/individual-local-earned-income-tax-reminder-notice-faq/

 

We hope that you find this information useful.

 

If you have any questions on this notification received, you may contact us by phone at 610-599-3139 or by e-mail at csberk@hab-inc.com.

2017.06.19